Optim Energy hearing to confirm reorganization pushed back to July 16

By Kali Hays

New York, June 12 – Optim Energy LLC’s hearing to confirm its third amended Chapter 11 plan of reorganization has been rescheduled to July 16 from June 24, according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Optim received approval of the disclosure statement related to the amended plan on May 19, which eliminated the company’s previous plans for a sale of its gas plant portfolio.

Under the amended plan, pre-bankruptcy secured parties will receive a second-lien note, ownership of the gas plant portfolio through issuance of new company equity interests, residual cash and undeliverable distributions in exchange for their claims.

The company said the pre-bankruptcy secured parties will receive “substantially less than a full recovery” on their claims, but they have consented to the reorganizing debtors’ estates funding to holders of allowed claims.

Holders of general unsecured claims will receive distributions as long as each class of those claims votes in favor of the applicable subplan. Unsecured creditors will receive additional consideration if they vote to accept the plan and do not opt out of releases included in the plan.

Debtor-in-possession claims will be paid in full in cash.

Existing equity interests will be cancelled and extinguished under the plan, and the new company will receive 100% of reorganized Optim’s equity.

Optim, a Silver Spring, Md.-based power plant owner, filed for bankruptcy on Feb. 12, 2014. The Chapter 11 case number is 14-10262.

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